After years of truckload carriers wooing shippers with low rates, expanded service offerings and intense engagement models, a perfect storm is underway that puts shippers and logistics providers in the awkward position of wooing the carriers. Why has this happened? Take a look at the backbone of the U.S. market economy – supply and demand.
The total cost of ground transportation for Canadian shippers increased by 2.4 percent in January 2015 when compared with December results, according to the Canadian General Freight Index.
David Latimer, wearing a South Carolina Highway Patrol button on his lapel, was working Capitol Hill one recent morning, warning of the dangers of longer and heavier trucks on the nation's highways.
FTR reports February 2015 U.S. trailer net orders were 20,400 units, 26 percent below January figures and - 32 percent Y/Y. The trailer market continues to moderate after record setting orders in 2014Q4. Backlogs fell for the first time in six months. Trailer orders have exceeded 347,000 for the past 12 months.
Analyst Insight: Shippers have controlled the dialogue on rates and service for several years. This has now past, as several key factors now help carriers negotiate at the bargaining table. The could lead to a true "play or pay" scenario most shippers are not prepared to fully appreciate. – Karl B. Manrodt, Professor of Logistics, Georgia College & State University
The total cost of ground transportation for Canadian shippers increased by 2.7 percent in December when compared with November results, according to newly published data from the Canadian General Freight Index.
Spot market freight volume declined seasonally in January, down 11 percent from an atypical December high, according to the DAT North American Freight Index, an indicator of truckload freight demand and capacity. Volume slipped 27 percent compared to January 2014. It was the first year-over-year decline on the Index in 19 months.
Ryder System Inc. is making it easier than ever for customers to find a pre-owned vehicle to meet their needs. With the addition of economical "As-Is" condition vehicles, cab and chassis, and high horsepower trucks to the company's existing online catalogue of commercial trucks, tractors, trailers and vans, Ryder's entire pre-owned vehicle inventory is now available at www.usedtrucks.ryder.com.
Nearly 44,000 net orders were posted in December, the second-strongest month on record for the trailer industry, according to the most recent State of the Industry: U.S. Trailers published by ACT Research Co. For total year 2014, net orders were 359,000, up nearly 55 percent over 2013.